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Brussels, |
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EU Competition Policy
Foreign Subsidies
The Foreign Subsidies Regulation (FSR), which came into effect on 12 July 2023, empowers the European Commission to tackle market distortions caused by subsidies granted by non-EU governments. It ensures a level playing field in the EU’s Single Market while remaining open to trade and investment.
Why the FSR?
Foreign subsidies have, in recent years, provided recipients with unfair advantages, such as:
The FSR closes this gap by introducing tools to identify and address distortive foreign subsidies.
Who's in Charge?
The European Commission is the sole enforcer of the FSR, with responsibilities divided as follows:
Resources and Additional Information
Why the FSR?
Foreign subsidies have, in recent years, provided recipients with unfair advantages, such as:
- Acquiring EU companies.
- Winning public procurement contracts.
These distortions undermined fair competition, as subsidies from non-EU governments were not subject to scrutiny like those granted by EU Member States under EU State aid rules.
The FSR closes this gap by introducing tools to identify and address distortive foreign subsidies.
Who's in Charge?
The European Commission is the sole enforcer of the FSR, with responsibilities divided as follows:
- Directorate-General for Competition (DG COMP)
- Oversees foreign subsidies related to mergers and acquisitions and conducts ex officio investigations into distortions outside public procurement.
- Contact: [email protected]
- Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW)
- Handles foreign subsidies in public procurement procedures and conducts related ex officio investigations.
- Contact: [email protected]
Resources and Additional Information
